Chicago Atlantic Real Estate Finance Inc. Common Stock (REFI)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

Strengths

• Solid return on equity of 11.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.32, providing financial flexibility
• Healthy net profit margin of 14.9% showing consistent profitability
• Attractive 15.8% dividend yield providing steady income returns
• FairStock composite score of 76/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Chicago Atlantic Real Estate Finance Inc. Common Stock is a micro-cap real estate company valued at $251 million. The business generates $55 million in annual revenue with a 14.9% net margin. From a quality standpoint, Chicago shows distressed Altman Z-Score of 1.3 warrants caution and adequate 12% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 7.1x, with offers a 49% margin of safety vs Graham Number of $23. Growth dynamics show revenue growing at 2.4% and profit growth of 3.0%. The 15.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 76/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer